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Toyota nears $40B cash reserve as calls grow for new investment, payouts

With the April 15 tax deadline just a few months away, our US readers will be faced with a decision should they get a refund: save or spend? It seems this issue is one many of us face whenever there's a windfall, trying to decide whether we should set the money aside in an account of some sort or use it as a down payment on a new car or a trip to the Apple store. Unsurprisingly, major corporations face a similar, albeit more complex, issue.
Take Toyota, for example. With President Akio Toyoda at the helm, the Japanese manufacturer has gracefully weathered recalls and natural disasters, all while turning beaucoup profits. Last quarter, profits quintupled to 434.4-billion yen ($4.3-billion USD), according to Bloomberg. Toyota also upped its forecast for the end of fiscal year 2013 (which ends on March 31 for Japan), to a record 1.9-trillion yen (about $18.8 billion). Now, the Japanese brand is reportedly sitting on a cash pile of nearly $40 billion, leaving Toyoda-san in an envious predicament - what should the company do with all that money?
Some think Toyota should be doing something, anything with that big stack of cash.

Toyota's Mirai fuel cell car gets its own special showroom

If the car's unique, the showroom better be as well. That's the approach Toyota is taking with the Mirai, its first production hydrogen fuel-cell electric vehicle. In fact, the model is getting its own special showroom starting this Friday. The Japanese automaker is opening the showroom in Tokyo. The facility takes up two floors totaling about 1,800 square feet and, from the pictures, it looks to have a very Zen-like quality. Toyota will be displaying one Mirai vehicle and will have another vehicle available for public test drives available every Friday. Toyota started selling the Mirai in Japan late last year and has announced plans to debut the car in the US – starting in California – this fall at a base price of $57,500, or a lease option of $499 a month for 36 months ($3,649 is due at signing). Earlier this year, Toyota said it was going to bump production to 2,000 vehicles next year (and 3,000 in 2017) from 700 units this year. With such a ramp-up in store, Toyota will spend about $170 million increasing production capacity of the fuel-cell vehicle. That total probably doesn't take into account the stylish new Tokyo showroom. Related Videos: New Toyota Mirai Showroom in Downtown Tokyo Offers a Glimpse of the Future Tokyo, Japan, April 13, 2015-On Friday, Toyota will open a showroom to highlight the groundbreaking Mirai fuel cell vehicle, which went on sale last December. Located within a hydrogen station operated by Iwatani Corporation in Tokyo's Minato Ward, the space will serve as a hub for sharing information on fuel cell vehicles and hydrogen, with the aim of promoting a hydrogen-based society. In addition to having one Mirai on display and another for test drives, the showroom will use videos and other media to raise awareness about the features of the vehicle, the benefits of hydrogen and more. Overview of the Toyota Mirai Showroom Location 4-6-15 Shiba-Koen, Minato-ku, Tokyo Opening April 17, 2015 Floor area 1st floor84 m2; 2nd floor81 m2 Hours 9:00-17:00 Closed Tuesday (The Iwatani hydrogen station is closed on Saturdays, Sundays, and holidays) Display vehicles 1 Test ride vehicles 1 (available to public on Fridays only) Website http://toyota.jp/mirai/showroom/ (Japanese only)

Major automakers urge Trump not to freeze fuel economy targets

WASHINGTON — Major automakers are telling the Trump administration they want to reach an agreement with California to avoid a legal battle over fuel efficiency standards, and they support continued increases in mileage standards through 2025. "We support standards that increase year over year that also are consistent with marketplace realities," Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers, a trade group representing major automakers, will tell a U.S. House of Representatives panel on Tuesday, according to written testimony released on Monday. The Trump administration is weighing how to revise fuel economy standards through at least the 2025 model year, and one option is to propose freezing the standards through 2026, effectively allowing automakers to delay investments in technology to cut greenhouse gas emissions from burning petroleum. The National Highway Traffic Safety Administration has not formally submitted its joint proposal with the Environmental Protection Agency to the White House Office of Management and Budget for review. Even so, last week, California and 16 other states sued to challenge the Trump administration's decision to revise U.S. vehicle rules. Auto industry executives have held meetings with the Trump administration for months and have urged the administration to try to reach a deal with California even as they support slowing the pace of reduction in carbon dioxide emissions that the Obama administration rules outlined. One automaker official said part of the message to President Donald Trump at a meeting on Friday will be to consider California like a foreign trade deal that needs to be renegotiated. Automakers want to urge him to get automakers a "better deal" — as opposed to potentially years of litigation between major states and federal regulators. On Friday, Trump is set to meet with the chief executives of General Motors, Ford, Fiat Chrysler and the top U.S. executives of at least five other major automakers, including Toyota, Volkswagen AG and Daimler AG, to talk about revisions to the vehicle rules. Senior EPA and Transportation Department officials will also attend. Environmental groups are eager to keep the rules in place, saying they will save consumers billions in fuel costs. A coalition of groups plans to stage a protest outside Ford's headquarters in Michigan.